Illinois Physician Krishnaswami Sriram Sentenced to 34 Months in Federal Prison for Tax Evasion and Medical Fraud

Dr. Krishnaswami Sriram, a Lake Forest-based physician, was sentenced to 34 months in federal prison on August 20, 2025, for orchestrating a complex scheme involving tax evasion and Medicare fraud totaling approximately $1.6 million, according to the U.S. Department of Justice.

The sentencing follows Sriram’s guilty plea earlier this year to charges of tax evasion and health care fraud. U.S. District Court Judge John Robert Blakey handed down the sentence, which also includes three years of supervised release and restitution payments of approximately $1.7 million to the United States government.

According to court documents and statements made during proceedings, Sriram engaged in systematic tax evasion from approximately 2011 to 2017. The Department of Justice detailed several deceptive tactics employed by the physician to avoid paying his tax obligations.

In one of the most brazen aspects of the scheme, Sriram transferred ownership of two rental properties to his children without their knowledge, while continuing to collect income from the properties himself. The physician also moved approximately $700,000 from U.S. bank accounts under his control to accounts in India, effectively hiding substantial assets from federal tax authorities.

When attempting to settle his tax debt through an offer-in-compromise with the Internal Revenue Service, Sriram deliberately omitted crucial financial information. His submission failed to disclose a U.S. investment account, multiple bank and investment accounts in India, and his ownership of the rental properties. These fraudulent omissions were designed to significantly reduce the amount he owed to the IRS.

Medicare Fraud Spanning a Decade

Beyond tax evasion, federal prosecutors revealed that Sriram committed Medicare fraud over a ten-year period from 2012 to 2022. The physician submitted false billing claims for in-home medical care that never occurred, according to the Justice Department.

Specifically, Sriram claimed to have provided medical care to Medicare beneficiaries on dates when those patients were either deceased or residing in inpatient facilities rather than their homes. The fraudulent medical records and billing statements resulted in $136,980.36 in false charges to the Medicare program.

The case was investigated by IRS Criminal Investigation, highlighting the federal government’s continued focus on tax crimes and health care fraud. The prosecution was handled by Assistant U.S. Attorney Sara E. Henderson from the Northern District of California, with assistance from former Trial Attorney Victor Yanz of the Criminal Division’s Fraud Section.

The substantial prison sentence reflects the serious nature of the crimes and the significant financial impact on federal programs. The combined tax loss and fraudulent billing exceeded $1.7 million, representing a substantial theft from taxpayers and the Medicare system.

In addition to the 34-month prison sentence, Sriram faces three years of supervised release following his incarceration. The court’s restitution order of approximately $1.7 million ensures that the federal government will recover the funds lost through his criminal conduct.

The case serves as a stark reminder of the severe penalties facing health care professionals who abuse their positions to defraud federal programs and evade tax obligations. The Department of Justice has indicated that such schemes not only steal from taxpayers but also undermine the integrity of critical health care programs serving vulnerable populations.

Sriram’s medical license status and the impact on his practice were not immediately addressed in the federal sentencing proceedings, though such criminal convictions typically trigger state medical board investigations and potential professional sanctions.